Saudi Aramco and Sinopec Partner to Advance Expansion of Yanbu Refinery

Saudi Aramco and Sinopec recently announced the signing of a joint venture framework agreement to pave the way for the expansion of their joint venture, Yanbu Refinery. The project coincides with the 10th anniversary of the establishment of Yanbu Refinery and aims to advance the development engineering study of the refinery's integrated petrochemical complex. Yanbu Refinery is a joint venture between Saudi Aramco (62.5%) and Sinopec (37.5%).

The project aims to maximize operational synergies and create added value by introducing an advanced petrochemical unit, a large mixed feed steam cracker with an annual capacity of 1.8 million tons, and an aromatics complex with an annual capacity of 1.5 million tons and its related downstream derivatives.

Saudi Aramco President and CEO Amin Nasser said: "The Joint Venture Framework Agreement further deepens and enhances our strategic partnership with Sinopec. The planned expansion project reinforces our commitment to product innovation and diversification. We look forward to strengthening our cooperation with Sinopec to build Yanbu Refinery into a leading refining and petrochemical joint venture and enhance Saudi Arabia's position as a global leader in energy and chemicals."

Aramco Downstream President Mohammed Y. Al Qahtani said: "Our strong partnership with Sinopec continues to grow. The expansion plan of the Yanbu Refinery project is in line with our downstream strategy to fully unlock the potential of resources, including converting up to 4 million barrels of crude oil per day into petrochemical products by 2030. Through cooperation with Sinopec, we are committed to improving cutting-edge refining and petrochemical capabilities to provide high-value products, create new opportunities, promote industry innovation, and promote economic transformation. ”

Sinopec General Manager Zhao Dong said: "The Yanbu Refinery is a flagship joint venture project of China-Saudi Arabia energy cooperation. It has not only become an important engine for Saudi Arabia's economic growth, but also actively promoted the upgrading of Saudi Arabia's petrochemical industry. The Yanbu Refinery Expansion Project is an important milestone in the China-Saudi Arabia bilateral partnership, marking a new stage of deeper and deeper cooperation between the two sides. We look forward to the expansion project to release new cooperation potential in the process of energy transformation of both sides. Sinopec and Aramco will work together to create a world-class refining and chemical integration project with significant comprehensive competitive advantages, reshape the traditional energy cooperation model, and expand new areas of sustainable development. ”